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[Federal Register Volume 89, Number 246 (Monday, December 23, 2024)]
[Notices]
[Pages 104578-104579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30529]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101945; File No. SR-DTC-2024-012]

Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Update the ClaimConnectTM Service Guide

December 17, 2024.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 5, 2024, The Depository Trust Company (``DTC'') filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Items I, II and III below, which Items have 
been prepared by the clearing agency. DTC filed the proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(4) thereunder.\4\ The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change \5\ consists of amendments to the DTC 
ClaimConnectTM Service Guide (``ClaimConnect Guide'') \6\ to 
(i) enable ClaimConnect users (``Users'') to submit and affirm multiple 
claims at once (i.e., the ``Claim Upload'' function), and (ii) make 
clarifying, technical, and ministerial changes, as described in greater 
detail below.
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    \5\ Each capitalized term not otherwise defined herein has its 
respective meaning as set forth the Rules, By-Laws and Organization 
Certificate of DTC (the ``Rules'') available at www.dtcc.com/legal/rules-and-procedures.aspx or the DTC ClaimConnectTM 
Service Guide, available at www.dtcc.com/-/media/Files/Downloads/legal/service-guides/ClaimConnect.pdf.
    \6\ ClaimConnect Guide, supra note 5.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency included 
statements concerning the purpose of and basis for the proposed rule 
change and discussed any comments it received on the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. The clearing agency has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    The proposed rule change will update the ClaimConnect Guide to (i) 
enable Users to submit and affirm multiple claims at once (i.e., the 
``Claim Upload'' function), and (ii) make clarifying, technical, and 
ministerial changes, as more fully described below.
Background
    ClaimConnect is a service available to all Participants. The 
service enables Participants to bilaterally match and settle cash claim 
transactions at DTC.
    With respect to ClaimConnect, a cash claim or cash claim 
transaction is a cash entitlement (i.e., a request for cash) from one 
Participant to another Participant. Typically, cash claims arise as a 
result of trading exceptions from a Corporate Action event, where a 
cash entitlement needs to be delivered from one holder to another.
    ClaimConnect is a validation and matching engine that continually 
monitors claims throughout their lifecycle in order to settle and close 
claims through DTC's settlement process. This continuous processing 
allows for both the manual matching of claims (i.e., affirmation) by 
Users and systematic matching of two like claims by ClaimConnect based 
on the alignment of certain data elements (i.e., auto-matching).\7\
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    \7\ For more information about ClaimConnect, see Securities 
Exchange Act Release No. 90481 (Nov. 23, 2020), 85 FR 76640 (Nov. 
30, 2020) (SR-DTC-2020-012).
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Proposed Rule Change
Claim Processing via Claim Upload
    Currently, for a User to submit a claim via the ClaimConnect web 
application, the User must manually submit each claim individually. 
This individual, manual process can be arduous and time consuming for 
Participants who need to submit multiple claims. Therefore, pursuant to 
the proposed rule change, a function will be added to ClaimConnect 
(i.e., the ``Claim Upload'' function'') to enable Users to submit and 
affirm multiple claims, at once, via the ClaimConnect web application 
located in the MyDTCC portal, by uploading a type of file specified in 
the ClaimConnect web application (e.g., a comma separated value file).
    Before a Claim Upload submission is processed, the system will 
perform a validation check to ensure all field values for each claim 
included are accurate. Claims that fail validation are flagged and 
rejected and will need to be corrected and resubmitted manually. Users 
will have the option to either reject all claims included in the 
uploaded file, even claims that passed validation, and upload a new 
file, or the User can continue with the claims that passed validation 
and then, separately, upload a new file containing only the claims that 
needed to be corrected. However, since Claim Upload does not offer an 
automated modification function, Users are only able to submit and 
affirm claims, and any modifications or cancellations of previously 
submitted claims must be made manually.
    In further support of the new Claim Upload function, the proposed 
rule change will (i) add a ``Claim Upload'' definition to mean ``a 
claim-submission option, via the ClaimConnect web application in the 
MyDTCC portal, for Users to submit and affirm multiple claims at one 
time by uploading a type of file specified in the ClaimConnect web 
application,'' (ii) explain that claims can be submitted and affirmed 
manually, either individually or in bulk via Claim Upload, and (iii) 
direct Users to the DTCC Learning Center page to obtain more 
information about Claim Upload.
Technical and Clarifying Changes
    Additionally, the proposed rule change will make clarifying, 
technical, and ministerial changes to the ClaimConnect Guide to (i) 
update the copyright date, (ii) remove a broken URL address for the 
DTCC Learning Center, and (iii) clarify that certain references to the 
MyDTCC portal are, more specifically, references to the ClaimConnect 
web application in the portal.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires that the rules of the 
clearing agency be designed, inter alia, to promote the prompt and 
accurate clearance and settlement of securities

[[Page 104579]]

transactions.\8\ DTC believes that the proposed rule change is 
consistent with the Section 17A(b)(3)(F) of the Act, as cited above.
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    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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    As described above, the proposed rule change will update the 
ClaimConnect Guide to (i) add the Claim Upload function and (ii) make 
clarifying, technical, and ministerial changes.
    Collectively, the proposed changes are intended to streamline and 
enhance claim processing related to trading exceptions from Corporate 
Action events associated with securities maintained by DTC by enabling 
easier submission and affirmation of multiple claims and ensuring the 
ClaimConnect Guide is clear, accurate, and current. By improving the 
claim management process for securities held at DTC for its 
Participants, DTC believes that the proposed rule change would help 
promote the prompt and accurate clearance and settlement of securities 
transactions, consistent with the requirements of the Act, in 
particular Section 17A(b)(3)(F) of the Act, cited above.

(B) Clearing Agency's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will have any 
impact or impose any burden on competition because, as described above, 
the proposed rule change simply updates the ClaimConnect Guide to add 
the Claim Upload function and make clarifying, technical, and 
ministerial changes to better describe the service and ensure the Guide 
is current, none of which should have any competitive impact on 
Participants or their use of DTC services.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    DTC has not received or solicited any written comments relating to 
this proposal. If any written comments are received, DTC will amend 
this filing to publicly file such comments as an Exhibit 2 to this 
filing, as required by Form 19b-4 and the General Instructions thereto.
    Persons submitting written comments are cautioned that, according 
to Section IV (Solicitation of Comments) of the Exhibit 1A in the 
General Instructions to Form 19b-4, the Commission does not edit 
personal identifying information from comment submissions. Commenters 
should submit only information that they wish to make available 
publicly, including their name, email address, and any other 
identifying information.
    All prospective commenters should follow the Commission's 
instructions on How to Submit Comments, available at www.sec.gov/regulatory-actions/how-to-submit-comments. General questions regarding 
the rule filing process or logistical questions regarding this filing 
should be directed to the Main Office of the Commission's Division of 
Trading and Markets at [email protected] or 202-551-5777.
    DTC reserves the right to not respond to any comments received.

III. Date of Effectiveness of the Proposed Rule Change, and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) \9\ of the Act and paragraph (f) \10\ of Rule 19b-4 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-DTC-2024-012 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to file number SR-DTC-2024-012. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549 on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of DTC and on DTCC's 
website (dtcc.com/legal/sec-rule-filings). Do not include personal 
identifiable information in submissions; you should submit only 
information that you wish to make available publicly. We may redact in 
part or withhold entirely from publication submitted material that is 
obscene or subject to copyright protection. All submissions should 
refer to file number SR-DTC-2024-012 and should be submitted on or 
before January 13, 2025.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-30529 Filed 12-20-24; 8:45 am]
BILLING CODE 8011-01-P
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